BoE DMP Survey: UK firms’ inflation expectations remain at 3.2% in the May quarter

The latest Bank of England (BoE) Decision Maker Panel (DMP) quarterly survey released on Thursday showed that “one-year ahead expected CPI inflation by the UK firms remained unchanged at 3.2% in the quarter to May.”

Key takeaways

US trade policy remains one of the top three sources of uncertainty for UK businesses.

But the share of firms seeing that to be the case is now down to 12% (previously 22%).

70% of UK firms reported that changes to US trade policy would have no material impact on their business.

Firms' expected year-ahead wage growth now seen at 3.7%, down by 0.1% from before.

The survey is one of the most closely watched by members of the BoE's Monetary Policy Committee (MPC).

Market reaction

At the press time, GBP/USD is defending bids near 1.3570, up 0.05% on the day.